Two years​ back, the Republic of​ Terbia, a developed​ economy, experienced a massive boom in the information technology​ (IT) industry. The rapid expansion of credit to the firms in this industry resulted in a significant increase in employment and prices in the economy.​ However, due to overvaluation and speculation in the​ market, stock prices of these firms fell sharply. IT being one of the most important​ sectors, this downturn affected the economy​ adversely, leading to a recession. Alicia​ White, an industry​ expert, suggests that expansionary monetary policy by the central bank is necessary to induce greater spending in the economy.​ However, Jaime​ Russell, a teacher at a community​ college, disagrees. According to​ him, increasing the supply of money would not help. The only possible impact of a fall in the interest rate would be an increase in aggregate supply.​ This, in​ turn, will reduce prices and profits further.​ Instead, the government should use expansionary fiscal policies to boost aggregate demand. Alicia and Jaime are most likely to have a difference of opinion on which of the​ following?

A. Falling prices in Terbia could indicate a slump in aggregate demand.
B. An expansionary fiscal policy can lead to an increase in prices in Terbia.
C. Expansionary monetary policy is more effective under a flexible exchange rate system.
D. Consumers in Terbia are confident that the economy will turn around in the near future.
E. Cyclical unemployment in Terbia has increased in recent months.